How to Transfer LLC to Another State?

If you wish to move your business to a new location interstate, you can dissolve your old company and create a new one or merge them once you relocate. If you plan to relocate only temporarily, filing for a foreign LLC can be the best solution. On the other hand, keep in mind that some states offer a domestication possibility, which is the easiest way of transferring your business. Whichever option you choose, make sure to hire professionals to help you with your relocation.

Reasons to Relocate LLC Interstate

Relocating your business to another state is a complex process. However, if done correctly, transferring your LLC interstate can bring numerous relocation benefits and help you take your business to the next level. When it comes to relocation reasons driving people to make such a significant step, here are some of the most common ones:

However, in order to relocate your company without any problems down the road, you need to know the laws and regulations of your new location, as well as decide whether your move is temporary or permanent. Both of these factors can greatly impact the way you choose to relocate your LLC.

How to Transfer LLC to Another State? Registering as a Foreign Company Is One of the Possibilities

If you don’t plan to organize a permanent relocation, you can continue operating with your old company and register in your new state. In this case, keep in mind that you’ll be registered as a foreign LLC. In order to do so legally, you’ll need to obtain approval for it from the Secretary of State or another similar office at your intended location. Additionally, a certificate of good standing is required from the company’s country of origin. This form of corporate relocation also implies that you’ll need to abide by the rules, pay annual fees, and submit annual reports to both jurisdictions.

However, keep in mind that it won’t allow you to reduce costs when relocating since it’s the least cost-effective option. Not only will you need to pay double annual fees, but in order to comply with each state’s Limited Liability Company filing and reporting requirements, you will need to hire a registered agent in each location. Still, if you’re planning on moving cross-country again soon, this is the option you should go with. It will allow you to run your business from a different location but keep the same bank accounts, permanent business addresses, and the like.

If you wish to know more about the foreign filing process, take a look at the video below:

Dissolve the Previous Company and Create a New One

When it’s time to move, you can deliberately dissolve the old company in order to create a brand-new one in the new state. However, the legal existence of your previous LLC will be terminated by dissolution. The methods and laws for dissolving a Limited Liability Company differ from one state to another and are also influenced by the way your LLC is set up. Usually, an operating agreement or articles of legalization will be able to outline the procedure for dissolving the firm. Additionally, any resolution to dissolve the LLC must be approved by all the company owners.

When you want to dissolve your previous company in order to move an LLC to another state, you must:

• Close all of its business,
• Pay off any remaining debt,
• Distribute assets between owners,
• File the required paperwork for the dissolution.

Which Taxes Do You Need to Pay Upon Dissolving a Company?

Members of a Limited Liability Company must pay income tax on any cash or assets they receive when the company is dissolved, but only in the case of the amount exceeding the basis in the membership interests. However, the members may receive an unlimited amount of valued personal or real property without paying taxes.

Merging the Old Company Into the New One Is Another Option for Transferring an LLC to Another State

Another possibility you have when transferring a company interstate is merging the existing LLC with the new company. This action won’t demand you dissolve the old business, and the good news is that most states’ regulations allow for the merger of one company into another.

Typically, you’ll have to make a plan in writing, have the members of the company vote to approve the plan, and send the articles of merger to the Secretary of State in the state where the old company originated. Once you file the articles of merge, your old business will be merged with the new company. All of its assets will be transferred to the new LLC, which is now liable for all of the former company’s debts and liabilities. A merger of two LLCs is tax-free for federal income tax purposes if at least 50% of the capital of the new company is owned by the members of the old one.

Some States Can Offer a Domestication Option

If you wonder how I can transfer my company from one state to another fast, domestication would be the best option. It is also often referred to as a conversion, and it enables you to do business as though your company was established in your new location right from the start.

What Do You Need to Do in Order to Transfer Your Business This Way?

Depending on the state, several steps will be required for domestication. However, the following actions would typically be on your to-do list:

• Create a plan for the conversion,
• Make sure all the company owners approve it,
• Get the certificate of good standing from your original location,
• File the necessary paperwork for domestication in the new destination,
• Dissolve the old company.

However, although transferring a firm through conversion is often the simplest way of relocating your business, it is not permitted in every state. Before hiring a cross-country moving company, you must choose some other option from those mentioned above if you’re relocating to a jurisdiction that does not allow it.

How to Transfer Your Company’s Belongings Once You Decide to Relocate?

Relocating your business to a new location can be daunting, especially when it comes to packing and transporting your belongings safely. You want to make sure everything is transported securely so that nothing gets damaged or lost in the process. But do you know how to move efficiently and safely at the same time?

The first step of planning a relocation is organizing your belongings. Start your office move by sorting through your items and deciding what to keep when relocating and what can go. This will help make packing much easier, as you won’t have to pack unnecessary items. It will also save you space when it comes time for transport. Once you have sorted through your items, label them so that they are easy to identify when it comes time for unpacking. This will help ensure that everything arrives at its destination safely and securely.

It is also important that you invest in quality packing materials before starting the process of relocating to a new city. Make sure your boxes are made from sturdy cardboard or other durable materials that won’t tear easily during transport. The boxes should also be properly sealed with tape or reinforced, especially if you have a lot of electronics as a part of your relocation essentials.

Hiring Professional Cross-Country Movers Is Your Best Option

Professional long-distance movers know how to handle large equipment, furniture, appliances, and other items with care. They have experience loading up trucks, navigating tight hallways and staircases, and setting everything up in the new location without damage or injury. This ensures that none of your property gets damaged during the move, so you don’t have to worry about replacing expensive equipment or filing insurance claims.

Not only that, but professionals from a long-distance moving company can help speed up the moving process significantly by using specialized equipment and techniques. It can be helpful in any case, but especially if you have a last-minute move. You don’t have to manage a team of volunteers, research relocation hacks, or do everything on your own – and risk making severe relocation mistakes. In the end, keep in mind that cross-country moving services can also imply additional help in the form of auto shipping or, for example, professional packing services, which can be very valuable for the company move.

Browse Through Different Cross-Country Moving Companies, and Find the One That Suits You the Most

Getting long-distance moving services for corporate relocation is obviously the best choice – but how to choose the right relocation company? Before you decide which cross-country moving service to get, browse through different websites and compare rates. Make sure to read reviews from previous customers. Once you’ve found the right match, contact the company and schedule an in-home estimate. With a little research, you’ll be able to find the perfect company to help you have a smooth and stress-free relocation.

That being said, Cross Country Moving Company can be a solution to all of your relocation problems. All you have to do is give us a call, ask for a free quote, and book your stress-free move.